Costly IP Trials Make Arbitration More Appealing

Law360, New York (March 5, 2008, 12:00 AM EST) -- With millions of dollars being spent to defend patent infringement claims in court, intellectual property lawyers say companies are becoming more inclined to put arbitration provisions in their patent license agreements to cut down on costs.

Fending off allegations in a patent trial can run anywhere from $3 million to $5 million, and the hefty price tag is pushing companies to seek alternative ways to resolve disputes. For many, arbitration seems to be the way to go.